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Kosciusko County Council adopts new tax-abatement policy and ordinance to standardize review
Summary
The council approved a revamped tax-abatement policy and enacted an abatement ordinance designed to standardize evaluation with a points-based scorecard for KEDCO and the auditor, retaining council flexibility for exceptional projects.
Kosciusko County Council members on Dec. 11 adopted a revised tax-abatement policy and an accompanying ordinance intended to replace a previously vague process with a more standardized, scorecard-driven approach.
A council committee member who led the effort said the policy was developed after reviewing neighboring counties’ economic development documents and tailoring a tool to the county’s size. "First off, I wanna ... let people know that a tax abatement does not diminish the taxing district's existing tax revenue," the presenter said, adding that abatements rely on net increases from a taxpayer’s capital investment. The presenter described the policy as a "tool" and a presumption that can be adjusted by the council in specific cases.
The proposed policy allows abatements of up to 10 years in accordance with Indiana law and includes a multiplier in the schedule for projects the council deems "transformative," which would increase the abatement available. The process described requires that abatement requests go first to the abatement committee for recommendation and then to the council for final approval; KEDCO and the auditor will assist applicants with paperwork and compliance reviews.
Council members discussed the change as a response to an earlier "willy-nilly" process, noting the new scorecard can streamline screening and save time by keeping nonqualifying applicants from advancing. One councilor said the county only has a few abatements currently and that a clearer guideline will help economic development outreach.
After discussion, the council moved to adopt the abatement ordinance (motion by Joe; second by Dylan) and approved it by voice vote. The ordinance was referenced in the meeting as "abatement ordinance 20 five-twelve-eleven-one" as read into the record.
The new policy is intended to be used by KEDCO (Kosciusko Economic Development Corporation) and the auditor’s office to administer abatements, review annual compliance, and help market the county to prospective businesses.
Next steps identified during the meeting include implementing the scorecard, posting procedural information for applicants (the presenter noted KEDCO would likely host the guidance on its website), and continuing annual reviews of abatements for compliance.
